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Technology Stocks : MFMI and ADVC -- Ignore unavailable to you. Want to Upgrade?

To: scouser who wrote (180)	7/16/1999 11:31:00 PM
From: SwampDogg	Read Replies (6) \| Respond to of 388

Not only is using T/A on a stock like this a joke but you have the indicator backwards. WILLIAM'S % R Overview Williams' %R (pronounced "percent R") is a momentum indicator that measures overbought/oversold levels. Williams' %R was developed by Larry Williams. Interpretation The interpretation of Williams' %R is very similar to that of the Stochastic Oscillator (page 244) except that %R is plotted upside-down and the Stochastic Oscillator has internal smoothing. To display the Williams' %R indicator on an upside-down scale, it is usually plotted using negative values (e.g., -20%). For the purpose of analysis and discussion, simply ignore the negative symbols. Readings in the range of 80 to 100% indicate that the security is oversold while readings in the 0 to 20% range suggest that it is overbought. As with all overbought/oversold indicators, it is best to wait for the security's price to change direction before placing your trades. For example, if an overbought/oversold indicator (such as the Stochastic Oscillator or Williams' %R) is showing an overbought condition, it is wise to wait for the security's price to turn down before selling the security. (The MACD is a good indicator to monitor change in a security's price.) It is not unusual for overbought/oversold indicators to remain in an overbought/oversold condition for a long time period as the security's price continues to climb/fall. Selling simply because the security appears overbought may take you out of the security long before its price shows signs of deterioration. An interesting phenomena of the %R indicator is its uncanny ability to anticipate a reversal in the underlying security's price. The indicator almost always forms a peak and turns down a few days before the security's price peaks and turns down. Likewise, %R usually creates a trough and turns up a few days before the security's price turns up. Example The following chart shows the OEX index and its 14-day Williams' %R. I drew "buy" arrows each time the %R formed a trough below 80%. You can see that in almost every case this occurred one or two days before the prices bottomed. Calculation The formula used to calculate Williams' %R is similar to the Stochastic Oscillator: Top of Page Home \| MetaStock \| Products \| Customer Corner \| Partners \| Free Stuff \| Legalities \| Site Map \| Contact Copyright 1999 Equis International.